Renting SFH during Chicago winters

[Mark McQuiston]

Hey team!

I just put in a couple offers on single family homes in the Chicago suburbs (Bartlett and Carol Stream). I've done my own analysis and read some related posts in the forum, and I'm very much of the mindset that if the numbers work, the numbers work, regardless of season. With that said, I'd love some input from those of you who have bought SFH in Chicago during Q4 or Q1. How long did it take to get it rented? What kind of vacancy factor did you build into your analysis (I've been using 15% - am I kidding myself?)?

Thanks!

Mark

[Lumi Ispas]

Hi Mark,

In Chicago,  the rental market starts April 1st and ends September 1st, however the best deals while buying property are purchased between October 1st - February 1st, as most of owners that will occupy properties have moved, and a lot of investors rest and go in vacation as the Holidays are starting. I base my opinion after 12 winters of selling and renting properties in Chicago, with over 50% of my clients being investors.

Number one moving weekend in Chicago, and entire USA is August 1st, due to the students and school age children starting school at the end of August. 

It will not take you long to rent your place if it's nice and clean and if you advertise it just slightly under the market price. Also, remember the timing of the rental market, make sure you do a shorter or longer lease than one year. If you start the lease January 1st 2015, end it July 31st 2016 and renew it at that time at the market price, or end the lease March 31st 2017, as in Spring you will rent it again for top dollar.

I think it will be better for you to have the place rented over the winter at a lower rent than keep it vacant. Focus only on the quality of the tenant and the terms of the lease.

Good luck to you!